|
The Center for Financial, Legal & Tax Planning, Inc. |
||||
|
Other Valuation Links ·
Items Needed to Begin a
Valuation ·
Is There “Value” in a “Valuation”? Part 1 |
Outline of a Valuation Report Letter from The Center 1. Appraisers
Qualifications: 1. Appraiser’s name 2. Address 3. Taxpayer ID# 4. Qualifications of the Appraiser 2. Purpose: 1. Overview 2.
Description of
the Property 3. Nature
and Purpose of the Appraisal 4.
Date of the
Valuation 5.
Ownership and
Control of the Company 6. Principal Sources of Information Used 7. Principal References 3. Company Data: 1. Organization of the Company 2.
Overview and
History of the Company 3. Products,
Customer Base, and Services 4. Key
Competitors 5. Personnel 4. Economic
Conditions: 1. Overview
of the National Economy 2. Overview of the Economy Where the
Company is Located 3. Overview of the Industry 4. General Outlook for the Company 5. Concluding Remarks 5. Assumptions: 1. Listing of key assumptions 6. Valuation
Methodologies 1. Earnings
Capitalization Method a. Add-backs to the Income Statement for
3 years b. Weighted Average
Earnings Calculated Methods of Earnings Valuation 1. Single-Period Capitalization of
Earnings Model a.
Value of the
company under this method 2.
Discounted
Future Earnings Model a. Value of the company under this method 3. Summary of the Two
Methods 2. Underlying Asset Method a. Net equity is beginning point b. Add-backs to the Balance Sheet c. Calculate whether profits were made as a result of
goodwill d. If results in a positive number then goodwill is
calculated e. Add the goodwill to the total of the Underlying
Asset Method 3. Cash
Flow/Leveraged Debt Method a. Add-backs to the Cash Flow Statement
for 3 years b. Weighted Average Cash Flow from
operations calculated Methods of Cash Flow Valuation 1. Single-Period Capitalization of Cash
Flows Model a. Value of the company under this
method 2. Discounted Future Cash Flows Model a. Value of the company under this
method 3. Summary of the Two Methods 4. Comparables
Method A. Publicly held companies’ price/earnings ratios. i. Average
the price earnings ratios ii. Value of the company
under this method B. Transactional Data of Merged or
Acquired Companies i. The average of the revenue ratios for recently sold
privately-held companies ii. Value of the company under this
method 3. Summary of the Two
Methods 5. Weighting of Methods a. Listing each method and the weights
applied b. Total value of the company 7. Value Per Share 8. Statement
of Limiting Conditions 9. Summary: 1. Statement by the Appraiser 2.
Valuation
Results 3.
Signatures and
Date 10. Appendix 1. Financial Statements 2. Tax Returns 3. Pictures 4. Product Line Card |
|||
|
The Center for Financial, Legal and Tax Planning, Inc. |
||||
|
|
Satellite Office: Longboat Key, FL |
|||
|
(618) 997-3436 Fax: (618) 997-8370 © Copyright 2005. All rights reserved. |
||||
